Equity entitlement when separating

getmore4less

Tom99 wrote: »

[FONT=Tahoma, sans-serif]My understanding of the original post was that a 50% share in a property then worth £360,000 was purchased for £180,000.

[/FONT] [FONT=Tahoma, sans-serif]However who provided this £180,000 has not been explained, as the deposit of £77,000 plus the initial mortgage of £73,510 leave nearly £30,000 unaccounted for.[/FONT]

if we go with that it will change my numbers so adjusting the previous post......


trimming to just do proper equitable shares.

Jane and Jim purchased 50% of a property for £180,000 as tenants in common (as not married). Jane invested £77,000 and Jim invested £0, so Jane owns 42% and Jim owns 0% at the outset. The mortgage repayments were paid equally per month.
.....
mortgage of £73,510 has reduced to £66,046
........

Two house valuations have been given by estate agents:
1. £368,000
2. £400,000
Average of these is £384,000 divided by the 50% ownership which equals £192,000

starting equity
you : £77k + 1/2 the mortgage
him : 1/2 the mortgage.

you 63.20%
him 20.42%
missing share 16.38%

you each owe 1/2 the remaining mortgage(£33,023).

20.42% of the £192k less the mortgage share is £6184

that should be his starting point for negotiations.

if you go down the you get your deposit back route

deposits and the mortgage you own 83.62% less the mortgage that's £94500K and some change, he is due 1/2 of that less the £77k = £8750 (+change)

............................
the calculations should include all the purchase costs and the missing share(£30k ish) needs to be accounted for

The numbers can adjusted for those.

VFR-Rider

Am I missing something?

Value of house now (let's use the lower value) = 368k
SO is looking about 85% = 312.8k
Less the outstanding mortgage 66k = 247k
He's due 247/2 = 123.5k

Now, let's assume he's doing the decent thing & not going after the total amount (or you have something in writing) means he's due 46.5k